After a rough 2020, Men’s Wearhouse LLC continues to face an uphill battle toward recovery.
Moody’s recently affirmed Men’s Wearhouse’s corporate family rating at Caa1, but assigned a new B3 rating to the retailer’s extra priority loan of $25 million due in 2025. Moody also changed its outlook from stable to negative.
Moody’s newest issuing for Men’s Wearhouse, which occurred on April 9, affirmed its other existing ratings. These include a B3 rating for senior secured priority term loan of $15 million due in 2025. Additionally, the retailer currently has a Caa1 probability of default rating.
Men’s Wearhouse’s CFR rating of Caa1 highlights its poor sales performance, high financial leverage, weak interest coverage, and negative earnings.
The COVID-19 pandemic impaired the ret…